How Long Does Fiscal Policy Affect the Economy

question 111

Multiple Choice

How long does fiscal policy affect the economy?

• A)only in the short run
• B)only in the long run
• C)in both the short and long run
• D)in neither the short nor long run

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Definitions:

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body undergoes while under stress, according to Hans Selye.

Alarm Reaction

The initial stage of the stress response, where the body mobilizes resources to confront a stressor.

Resistance

The refusal to accept or comply with something; in a psychological context, it may refer to an individual's unconscious defense mechanisms against certain thoughts or realities.

Exhaustion

A state of extreme physical or mental fatigue, usually resulting from stress or overwork.